Fraud Examination 7th Edition – W. Albrecht – Full Answer Guide Chapter 1–17 – Complete Solutions Manual

TEST BANK xz




Fraud Examination 7th Edition b
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y Albrecht All Chapters 1 to 18
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,TABLE OF CONTENTS xz xz




Part I: INTRODUCTION TO FRAUD.
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1. The Nature of Fraud.
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2. Who Commits Fraud and Why.
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3. Fighting Fraud: An Overview xz xz xz




. Part II: FRAUD PREVENTION.
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4. Preventing Fraud. xz




Part III: FRAUD DETECTION.
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5. Recognizing the Symptoms of Fraud. xz xz xz xz




6. Data-Driven Fraud Detection xz xz




Part IV: FRAUD INVESTIGATION.
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7. Investigating Theft Acts. xz xz




8. Investigating Concealment. xz




9. Conversion Investigation Methods. xz xz




10. Inquiry Methods and Fraud Reports.xz xz xz xz




Part V: MANAGEMENT FRAUD.
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11. Financial Statement Fraud. xz xz




12. Revenue- and Inventory-Related Financial Statement Frauds.
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13. Liability, Asset, and Inadequate Disclosure Frauds.
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Part VI: OTHER TYPES OF FRAUD.
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14. Fraud Against Organizations.xz xz




15. Consumer Fraud. xz




16. Bankruptcy, Divorce, and Tax Fraud. xz xz xz xz




17. e-Commerce Fraud. xz




Part VII: RESOLUTION OF FRAUD.
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18. Legal Follow-Up. xz




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,Chapter 01 - xz xz


The Nature of Fraud
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1. One way that criminal law differs from civil law is that it:
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a. provides remedies for violations of private rights.
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b. must yield a unanimous verdict.
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c. can have a jury of fewer than 12 persons.
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d. allows for various claims in one action.
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ANSWER: b
FEEDBACK: a. Incorrect. The requirement to provide remedies for violations of private rights is a
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characteristic of civil law; criminal law deals with crimes against society as awhole.
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b. Correct. Criminal trials must result in a unanimous verdict.
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c. Incorrect. The requirement for a unanimous vote characteristic of civil la
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w;
criminal trial juries must have 12 persons.
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d. Incorrect. In inclusion of various claims in one action is a characteristic of civill
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aw; criminal law permits only one claim at a time.
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POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal and Civil Prosecution of Fraud
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QUESTION TYPE: xz Multiple Choice xz


HAS VARIABLES:
xz False
LEARNING OBJECTIVES: xz x z FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws.xz xz xz xz xz xz xz xz xz xz



OTHER: Source: 6e revised xz xz


DATE CREATED:
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DATE MODIFIED:
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2. Which of the following is NOT an common element of a Ponzi scheme?
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a. Gaining other's confidence xz xz


b. Promising abnormally high returns xz xz xz


c. Investing collected money xz xz


d. Using part of the investment principle to pay previous investors
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ANSWER: c
FEEDBACK: a. Incorrect. Gaining other’s confidence is one of the most important elements of the
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“con.”
b. Incorrect. Promising abnormally high returns is how fraudsters lure in investors.
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c. Correct. Investing collected money is very unlikely.
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d. Incorrect. In Ponzi schemes, the original principle is often used to make inter
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est payments. x z



POINTS: 1
DIFFICULTY: moderate
REFERENCES: Types of Fraud xz xz


QUESTION TYPE: xz Multiple Choice xz


HAS VARIABLES:
xz False
LEARNING OBJECTIVES: xz x z FRAU.ALBR.25.1.3 - Understand Different Types of Fraud. xz xz xz xz xz xz



OTHER: Source: 6e , revised xz xz xz


DATE CREATED:
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DATE MODIFIED:
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, Chapter 01 - xz xz


The Nature of Fraud
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3. The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
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a. not reporting bribe income may be grounds for being charged with tax evasion.
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b. a tax filing that excludes income from fraud may be considered a false return.
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c. bribes may be lawfully deducted as business expenses.
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d. failure to report income from fraud may be grounds for being charged with tax evasion.
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ANSWER: c
FEEDBACK: a. Incorrect. Not reporting bribe income may be grounds for being charged with tax
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evasion.
b. Incorrect. Filing income tax that excludes income from fraud may be considered
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an improper tax filing.
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c. Correct. Bribes cannot be deducted as legitimate business expenses.
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d. Incorrect. Failure to report income from fraud or bribes may be prosecuted as taxevasion.
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POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law xz


QUESTION TYPE: xz Multiple Choice xz


HAS VARIABLES:
xz False
LEARNING OBJECTIVES: xz x z FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. xz xz xz xz xz xz xz xz xz xz



OTHER: Source: 6e revised xz xz


DATE CREATED:
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DATE MODIFIED:
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4. Which one of the following is NOT a characteristic of a criminal proceeding?
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a. Criminal proceedings deal with offenses against society.
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b. Consequences of criminal proceedings include restitution and damage payments.
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c. Criminal proceedings involve a jury of 12 individuals.
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d. In criminal proceedings, only one claim may be heard at a time.
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ANSWER: b
FEEDBACK: a. Incorrect. A crime is considered an offense against society. xz xz xz xz xz xz xz xz xz



b. Correct. In a criminal proceeding, the consequences are jail and/or fines.
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c. Incorrect. A criminal jury consists of 12 jurors. xz xz xz xz xz xz xz


d. Incorrect. Only one claim is heard at a time, whereas in a civil case many claimsmay
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xz be joined into a single case.
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POINTS: 1
DIFFICULTY: easy
REFERENCES: Criminal Law xz


QUESTION TYPE: xz Multiple Choice xz


HAS VARIABLES:
xz False
LEARNING OBJECTIVES: xz x z FRAU.ALBR.25.1.5 - Understand the differences between criminal and civil fraud laws. xz xz xz xz xz xz xz xz xz xz



OTHER: Source: 6e revised xz xz


DATE CREATED:
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DATE MODIFIED:
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